Wiley Accounting
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Discussion Topics for Today's Classroom

Going DEEP

Description: Deep Earth Energy Production Corp. (DEEP) is going deep. The company is the driving force behind a 3.5 km deep well to be drilled in Estevan Saskatchewan. The well will generate geothermal energy from underground steam, providing a source of green power to the Western province. Funnily enough, DEEP’s deep well source was discovered by the old carbon producing oil industry.

1) Are there any renewable energy projects near your university campus? What variety?

2) Why do you think the federal and provincial governments contributed to the costs of the project?

3) See page 25 of Wiley’s Managerial Accounting: Tools for Business Decision-Making. Note the distinctions between Fixed and Variable Costs. How do these terms apply in the story about the costs of DEEP’s power production?